Bare in mind that in earlier version of GRUB, if your Windows was installed on first partition then you need to give root=(hd0,0). Thats how GRUB used to number partitions. Starting from GRUB 2, you need to give root=(hd0,1), if your Windows is installed on first partition. So under GRUB 2 it looks like this:

# you can get both of these from Prey's web service
api_key='xyz'
device_key='xyz'
# mailbox to send the report
mail_to='jan@faix.cz'
# the password is now stored base64 encrypted
# if you wish to generate it by hand, run
# $ echo -n "password" | openssl enc -base64
smtp_server='mail.faix.cz:25'
smtp_username='jan@faix.cz'
smtp_password='cHJkZWw='